Free play on Forex will become a thing of the past

The President of the Russian Federation Vladimir Putin has signed an amendment to the Securities Market law. Modifications will concern the definition and regulation of Forex-companies activity. The most part of adjustments will come into force on the 1st October 2015.

Now under the activities of the Forex dealer will be recognized operations on conclusion of contracts in one's own name and at one's own expense with individuals, who are not sole entrepreneurs, and not on organized auctions. The Forex dealer has no right to combine its activity with another professional activity on securities market and other operations.

The amount of Forex dealer equity should be not less than 100 mln RUB, besides the money liabilities under contracts of Forex dealer with individual, who is not a sole entrepreneur, are executed in a non-cash form.

Earlier The Central Bank noted that banks will have to stop providing forex-services to citizens: according to the new act, the combining of bank activity and Forex will be banned.

The initiative is commendable as the absence of accurate auction rules on Forex, led to the fact that any citizen without special training could participate in the gamble on currency exchange. Many companies without appropriate financial support and professional experience were set, organizing such trading sessions.